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XRP derivatives markets showed signs of stabilization in the aftermath of a severe flash crash triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports on October 10, 2025. The cryptocurrency plummeted from $2.77 to $1.64 within hours, marking a 41% intraday decline and one of the largest single-day liquidations in crypto history, with over $19 billion in leveraged positions wiped out . XRP's futures open interest (OI) collapsed from $8.36 billion to $4 billion during the sell-off, reflecting a sharp loss of conviction among traders . However, by October 13,
had rebounded to $2.55, reclaiming key support levels and signaling potential short-term stability.Technical indicators suggested cautious optimism. The RSI rebounded from oversold levels to 38, while the 200-day EMA at $2.63 remained a critical threshold for bullish momentum. A sustained close above this level could validate the recovery, though bearish sentiment lingered due to the MACD indicator maintaining a sell signal . Open interest in XRP futures remained suppressed at $4.1 billion as of October 13, down 6.3% from peak levels, indicating reduced speculative activity .

Institutional buyers played a pivotal role in the rebound. On-chain data revealed large holders accumulating XRP between $2.34 and $2.45, moving significant volumes off exchanges . This activity, coupled with RLUSD stablecoin adoption, which allows institutional purchases of XRP without fiat exposure, was cited as a catalyst for sustained demand . Analysts noted that XRP's swift recovery contrasted with past liquidation events, suggesting healthier market structure and growing institutional confidence.
The broader macroeconomic environment remained a key risk. Trump's tariff announcement exacerbated global risk-off sentiment, triggering cross-asset sell-offs and pushing
below $110,000. However, XRP's rebound aligned with broader crypto market stabilization, with its market capitalization recovering 66% of its losses to $158.5 billion by October 13 . Derivatives data showed a shift in positioning, with funding rates turning negative and long liquidations outpacing shorts 15:1 during the crash .Looking ahead, XRP's trajectory hinged on several factors. Key resistance levels at $3.05 and $3.65 were identified as critical targets, contingent on sustained recovery momentum . The upcoming decision on multiple XRP ETF applications between October 18 and 25, 2025, was viewed as a potential catalyst for institutional inflows, with Bloomberg analysts estimating a 100% approval chance . Additionally, Ripple's annual Swell 2025 conference in November, historically linked to price momentum, could introduce further catalysts through XRPL upgrades and partnerships.
Market participants also monitored regulatory developments. The SEC's August 2025 settlement with Ripple, affirming XRP is not a security in public sales, was cited as a foundation for institutional adoption . However, ongoing geopolitical tensions, particularly U.S.-China trade dynamics, remained a wildcard for volatility.
[1] Coindesk (https://www.coindesk.com/markets/2025/10/11/xrp-rebounds-sharply-after-41-flash-crash-reclaims-usd2-47-support)
[2] FXStreet (https://www.fxstreet.com/cryptocurrencies/news/ripple-price-forecast-xrp-derivatives-eye-stability-after-flash-crash-202510131545)
[3] Financial Content (https://markets.financialcontent.com/redlandsdailyfacts/article/breakingcrypto-2025-10-13-xrp-defies-gravity-a-deep-dive-into-its-rapid-rebound-after-a-massive-flash-crash-and-liquidations)
[4] Brave New Coin (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-breaks-2-50-barrier-recovers-40-from-flash-crash-with-3-breakout-in-sight)
[5] Cointelegraph (https://cointelegraph.com/news/xrp-66-percent-rebounds-from-price-crash-regaining-75b)
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